Choa Chu Kang Executive Condo Tender Draws 11 Bids

SINGAPORE: An executive condo (EC) site at Choa Chu Kang has attracted 11 bids, suggesting that developers are keeping a “positive outlook” on the market despite the notable unsold stock and an expected influx of units in the coming months.

Property firm SLP International Property Consultants said this is the highest number of bids for an EC site since the tender for a site at Anchorvale Crescent in February 2014. The tender for the 99-year-leasehold site in Choa Chu Kang Avenue 5 closed on Tuesday (Jul 28).

“That earlier tender attracted 12 bids. In addition, the average number of bids for the seven EC land tenders that were launched in 2014 was 5.4, almost half of the 11 bids submitted in the tender that closed today,” SLP International’s research and consultancy executive director Nicholas Mak said.

The top bid, from Qingjian Realty (Residential), Suntec Property Ventures and Bohai Investments (Sengkang), was S$156 million, or S$295 per square foot per plot ratio (psf ppr). The second highest bid, from TID Residential, was S$275 psf ppr.

But despite the number of bids, a market watcher said bid prices continue to stay low, below S$300 psf.

According to ERA Realty key executive officer Eugene Lim, the bids this time round were substantially lower than the winning bids by Sim Lian Land, which won the Wandervale site in September 2014 at S$361 psf, and MCL Land for the Sol Acres site at S$357 psf in February 2014.

However, Mr Lim added that the lower bid for the Choa Chu Kang Avenue 5 site was probably due to its less attractive location.

“Given the much lower land bid price, the new development could well be designed with affordability in mind, possibly with a selling price of below S$800 psf,” he said.

The site can yield about 490 units.

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